Tech stocks—which are typically fast-growing and expensive—don’t usually belong in a basket of value stocks, but with the recent derating of some higher-multiple stocks financial managers now have an opportunity to include battered tech stocks into their portfolios, contends an article in Barron’s.

After the Nasdaq-100 plummeted 29% in 2022, it has rallied this year. However, as the economy begins to normalize again, value investing has become popular once again, and the time may be right for a convergence of the two typically-opposed trends. Many well-known tech companies that have solid growth potential and high valuations continue to be dismissed from consideration in a value stock basket but if managers used the same factors to determine value stocks in other sectors they would find opportunities in the tech sector, the article maintains. Some of those factors include looking for strong growth companies with reasonable stock prices alongside noticeable catalysts for future improvement, such as a new CEO who might shake things up a bit with a competitive strategy. Meanwhile, tech companies that have positive long-term prospects as well as attractive valuations could include firms that have been incorporating trends like AI and machine learning technology—long-term trends that could make tech a blockbuster sector to invest in for a long time to come. The semiconductor industry also shows an array of potentially undervalued companies due to the chip shortage, which could provide a solid growth opportunity to include in a value portfolio.

Tech stocks could present a great opportunity for future returns, and could work in a value fund because they often have lower valuations to start with. In fact, while pricey tech stocks with price-sales multiples greater than 10 usually don’t become 10-baggers (when a stock has the potential to reach a tenfold return on the original investment), a potential 10-bagger in the tech sector has a lowered valuation, according to the article, which cites a recent study by AllianceBernstein. However, one thing to remember is that not every tech stock is a growth stock, and opportunities can still come out of the market when quality companies are reasonably valued.